General Discussion

DanTex

(20,709 posts)

100. It's sort of the truth. The problem isn't "loopholes", it's capital gains.

Wed May 27, 2015, 05:01 PM

May 2015

A lot of wealthy people get a large share of their income from capital gains, which is taxed at a much lower rate than ordinary income. The top income tax rate right now is 39.6%, the top capital gains rate is 20%. That's the main reason for things like Warren Buffet paying a lower effective tax rate than his secretary.

So unless that capital gains tax rate is raised as well, it's true that a lot of rich people will still pay relatively low overall tax rates. And also, if the rate does go to 90%, the tax avoidance industry is going to get a lot more active, because once a person hits that bracket, they are going to devote a lot of effort to finding ways to avoid it.

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Bernie Sanders Would Tax The Income Of The Wealthiest Americans At 90 Percent [View all] oberliner May 2015 OP

Speak it Bernie Go Vols May 2015 #1

So would I. Coventina May 2015 #2

It worked OK back in the Ike Age hifiguy May 2015 #3

as much as i like Bernie...this was stupid backwoodsbob May 2015 #6

45% NaturalHigh May 2015 #30

I see it differently salib May 2015 #58

Uhm... kenfrequed May 2015 #82

In the 1950s DFW May 2015 #95

So what are they going to do, eat their dollars? davekriss May 2015 #103

A guy I know back home had a better solution DFW May 2015 #107

For every good rich person... davekriss May 2015 #108

Odd that Eisenhower would be considered a communist by the standard of today's GOP LanternWaste May 2015 #11

The Birchers did call him one... JHB May 2015 #20

Even better would be to emphasize the change in distribution JHB May 2015 #19

So you are telling me GummyBearz May 2015 #4

If the top tax rate was 90% what would upaloopa May 2015 #5

Infrastructure - feed the hungry - house the homeless - free college - etc. lame54 May 2015 #7

probably the wealthy would invest and spend more of their money CreekDog May 2015 #13

The 90% would be on earned income. upaloopa May 2015 #18

Tax all income regardless of source at same rate. Kill off that game on point May 2015 #84

Catch up to the rest of the world... SomethingFishy May 2015 #17

The federal government is currently very flawed. NCTraveler May 2015 #85

I have to agree Scootaloo May 2015 #101

Universal healthcare, free higher education abelenkpe May 2015 #43

Pay for W's wars. jwirr May 2015 #50

Ouch. Isn't there a better way to get tax income. Gregorian May 2015 #8

I'm all for a progressive income tax SickOfTheOnePct May 2015 #14

It is a marginal rate tk2kewl May 2015 #35

I understand that SickOfTheOnePct May 2015 #36

If you are sick of the one percent salib May 2015 #59

And I think it's immoral to take 90% SickOfTheOnePct May 2015 #93

Why is 90 percent "immoral" and 70 percent fine? oberliner May 2015 #96

"Earn it" salib May 2015 #104

Yes, there is a better way. Raise the top capital gains tax rate moderately. DanTex May 2015 #97

We don't need 90% instantly. Orsino May 2015 #111

I applaud the position, but the headline overstates. morningfog May 2015 #9

Thanks. That's true. I fell for it. Gregorian May 2015 #16

I would hope he would try oberliner May 2015 #73

Calling the "lone wolf" assassin! Human101948 May 2015 #10

Bullshit headline. He said he didnt think it was too high... bunnies May 2015 #12

Yup. closeupready May 2015 #32

Wouldnt surprise me. bunnies May 2015 #34

Think Progress is pushing Hilary? oberliner May 2015 #41

Bernie is smart enough to know.... MaggieD May 2015 #15

Because that is not actually the truth. It's just rhetoric you are using. Bluenorthwest May 2015 #21

It is actually the truth MaggieD May 2015 #23

This sounds like faith-based tax policy. salib May 2015 #60

Sounds more like tin foil to me. Erich Bloodaxe BSN May 2015 #78

Yep. salib May 2015 #105

It's sort of the truth. The problem isn't "loopholes", it's capital gains. DanTex May 2015 #100

Eh... kenfrequed May 2015 #27

how much of the Rich income is exempt from any tax? Sheepshank May 2015 #22

Bingo MaggieD May 2015 #24

Yes, close the loopholes TexasMommaWithAHat May 2015 #44

Loopholes are important, but not the real point of a near 100% top marginal tax rate. salib May 2015 #61

It's not so much income oberliner May 2015 #74

But if the billionaires were taxed at an appropriate rate guillaumeb May 2015 #25

That they CAN spend billions on buying politicians is evidence that their tax rates are too low. smokey nj May 2015 #39

I wish that more Democrats would get it. guillaumeb May 2015 #55

There is a difference in terminology here kenfrequed May 2015 #26

Kudos to him for honestly stating his opinion of what the top tax rate should be. Nye Bevan May 2015 #28

No one ever explains what this 90% means. I think back in the 50s it was the earnings OVER valerief May 2015 #29

Devil is in the details, the details are omitted n/t Sheepshank May 2015 #89

I sure hope we could do that shenmue May 2015 #31

That would be the MARGINAL tax rate. It only kicks in beyond a certain point. nt tblue37 May 2015 #33

But I think it helps if pols *always* explain what's meant by marginal. Many people think all valerief May 2015 #94

That's for sure. In fact, I 'd bet money that many, perhaps even most, reporters who write tblue37 May 2015 #106

Damn, I would hope reporters are smarter than that...but then there's no such valerief May 2015 #109

I see little evidence of "smarter than that" among most MSM transcriptionists. nt tblue37 May 2015 #110

The question is -- at what level would the top rate kick in? pnwmom May 2015 #37

Exactly! This could end up hurting moderately successful Democrats as well as the Billionaires. beaglelover May 2015 #38

It could hurt the Democratic party if this were twisted into the idea that the Democrats pnwmom May 2015 #46

That headline wont play well with the ignorant masses DCBob May 2015 #40

exactly - they'll only see "Sanders will tax you at 90%" 0rganism May 2015 #42

They should read the whole article oberliner May 2015 #45

People should do lots of things FrodosPet May 2015 #52

They wont. DCBob May 2015 #70

Too low. It should be 100% like FDR tried in 1942. He compromised and got a 94% top tax rate. Cheese Sandwich May 2015 #47

Eisenhower was paying for the Korean War. W put the bill on the credit card. It is time to pay for jwirr May 2015 #48

He also built the interstate highway system which literally paved the way for American growth. gordianot May 2015 #53

"Paved the way" oberliner May 2015 #75

To be accurate, LWolf May 2015 #49

It's Been Done Before... Worked Rather Well Too... WillyT May 2015 #51

The Reagan Revolution oberliner May 2015 #63

Probably Not...When Most In Congress Are Millionaires... WillyT May 2015 #64

Supreme Court too oberliner May 2015 #65

Seeing how they've gotten 99% of the loot from 34 years of Reaganomics, yeah. Octafish May 2015 #54

And the rich would still have far more than they could ever spend. 99Forever May 2015 #56

read what you just posted madokie May 2015 #57

The article is supportive of Sanders oberliner May 2015 #62

Disingenous headline... He didn't say that would be the amount he would like to see the ChisolmTrailDem May 2015 #66

He brought up that amount in the interview oberliner May 2015 #67

Its a bullshit post linking to a bullshit story madokie May 2015 #68

What the heck are you talking about? oberliner May 2015 #69

I don't give a flying fuck if it came our of DOG's ass madokie May 2015 #71

I don't understand why you think this oberliner May 2015 #72

Its a bullshit article by a bullshit artist madokie May 2015 #76

Bryce Covert is the Economic Policy Editor for ThinkProgress oberliner May 2015 #79

pointing out a bullshit article madokie May 2015 #81

I don't know what you mean by that phrase oberliner May 2015 #86

MARGINAL TAX RATE kenfrequed May 2015 #83

Of course oberliner May 2015 #87

Agreed kenfrequed May 2015 #88

It's a fair point oberliner May 2015 #90

Exactly. kenfrequed May 2015 #92

Well, it's a start. Erich Bloodaxe BSN May 2015 #77

Exactly oberliner May 2015 #80

K&R yuiyoshida May 2015 #91

Good. n/t PowerToThePeople May 2015 #98

A more realistic and better thing to do would be to moderately raise capital gains taxes. DanTex May 2015 #99

JFK thought it was too high. n/t hughee99 May 2015 #102